Kadai Paneer Recipe – Capsicum Tomato Gravy – Video

Kadai paneer is a blend of Paneer, Capsicum and Indian Tadka. Our tried and tested restaurant style recipe can bring unique taste right in your kitchen.

Written by Maahi Gupta
  By Maahi Gupta          Updated  11 Jan, 18



Kadai Paneer is one of the most famous paneer preparation in Indian Cuisine.

You will find it in almost all restaurant menus. I simply love paneer and its variations from Paneer Pasanda, Paneer tikka masala to Shahi paneer.

There are tens of paneer variations like this but all of them have their own taste and place in this vegetarian world, just like the chicken preparations have it in non-vegetarian's world.

We are today presenting the tried and tested restaurant style Kadai Paneer. This one is primarily made with Capsicum (Green Bell peppers) and tomato gravy.


5 min Prep
20 min Cook
Yield  2 cup
Nutrition Facts
Kadai Paneer Recipe - Capsicum and Tomato Gravy [Video]
Amount Per Serving
Calories 675 Calories from Fat 459
% Daily Value*
Total Fat 51g 78%
Saturated Fat 18g 90%
Trans Fat 0.02g
Polyunsaturated Fat 4g
Monounsaturated Fat 23g
Cholesterol 70mg 23%
Sodium 643mg 27%
Potassium 679mg 19%
Total Carbohydrates 37g 12%
Dietary Fiber 13g 52%
Sugars 13g
Protein 22g 44%
Vitamin A 79%
Vitamin C 424%
Calcium 63%
Iron 38%
* Percent Daily Values are based on a 2000 calorie diet.


Chopping Vegetables

  • Ingredient spices should now be ready.
    Ingredients spices for kadai paneer
    Ingredients spices for kadai paneer 
  • Other ingredients should also be ready.
    Ingredients Veggies for Kadai paneer
    Ingredients Veggies for Kadai paneer 
  • Chop Capsicum and remove the inner white portion. Chop 2 Onions, 2 Tomatoes and Cottage Cheese (Paneer) into small pieces.
  • Grind the 3rd Onion into fine paste and keep aside. Grind Green Chilies and the 3rd Tomato together into fine paste. Remember to grind Onion separately from Green chili and Tomato. You can combine the grinding of tomato and Green Chili though.
  • Grate the Ginger and Garlic into fine small pieces.

Roasting Vegetables

  • Heat 2 Tbsp of Oil in a pan. Roast chopped Capsicum in hot Oil on medium flame.
    Roasting vegetables in preparation for grinding
    Roasting vegetables in preparation for grinding 
  • After 2 minute of roasting, take out the capsicum from pan and keep aside.
  • Now, roast the chopped Onions in the same Oil for 2 minutes. Stir constantly to avoid burning.
  • Once Onions are ready, take them out in a separate plate.
  • Again add 1/2 Tbsp of Oil in a pan and heat it for 1 minute. You can use the same pan that we have used till now.
  • In this hot Oil, add Paneer pieces and roast for about 1 minute. Keep stirring to avoid burning.
  • After 1 minute, take paneer out from Oil and keep aside.
  • In the same left over Oil, add chopped Tomatoes. Roast for about 2 minute on medium flame. Once done, take them out from the pan.
  • At this time, you should have 4 different sets of vegetables i.e. roasted Onion, Capsicum, Tomato and Paneer. They would all form the thick gravy and will be used in next steps.

Making Tadka

  • You can use the same pan that you have used till now to continue.
    Roast Spices with Onion paste
    Roast Spices with Onion paste 
  • Add 2 Tbsp of Oil in a pan. Heat it on high flame for 2 minutes.
  • Add Bay leaves, chopped dry Red Chilies, Cinnamon stick and Cloves. Roast for about 30 seconds. No need to take them out this time. Let them be there in the pan.
  • Add grated Ginger and garlic to the same pan in step above. Roast on medium flame until garlic achieves light golden color.
  • Once done, add Onions paste and roast until it turns light golden brown. Keep the stove on medium flame.

Mixing spices

  • Now add Tomato paste and roast for 1 minute on medium flame.
    Mixing spices and veggies
    Mixing spices and veggies 
  • After 1 minute, add Salt, Coriander Powder, roasted cumin, Red Chili Powder, Turmeric Powder and Garam masala. Cook until mixture separates itself from Oil. It would take about 3-4 minute.
  • Now add Tomato Sauce and mix well.
  • Finally, add all the roasted vegetables Capsicum, Tomato, Onion, Cottage Cheese. Mix well. Turn the stove on low flame.

Slow cooking

  • Now cover the lid of the pan and cook for about 5 minutes on low flame.
    Slow cooking with lid in final steps
    Slow cooking with lid in final steps 
  • After 5 minutes of cooking with lid, add cream and Coriander Leaves. Mix it well again.
  • Switch off the stove and the super delicious Kadai Paneer is ready to serve hot.

Kadai paneer
Kadai paneer 

 Storage and Serving Suggestions

  1. Kadai Paneer can be refrigerated up-to 2 days for best taste. You can re-heat using either microwave or stove before serving.
  2. You can serve Kadai Paneer with breads like Naan or Lachha Paratha.

Paneer Recipe